Nazara 2.0, Walmart’s PhonePe Woe & More

Nazara Hits Reset 

Nazara just endured the darkest quarter in its history. In Q2 FY26, it reported a loss of INR 34 Cr due to the collapse of its RMG investments and found itself in the midst of an esports winter in Europe. So, what’s the gaming giant doing to tide over this crisis?

Building Futureproof IPs: Nazara’s revival plan centres on building intellectual properties (IPs) that hold long-term value. It is also creating a multi-franchise portfolio like Animal Jam and World Cricket Championship, which thrive across platforms, markets and formats. Alongside, Nazara is leveraging GenAI tools like Claude to build games, compress development cycles and create immersive experiences. 

Betting On Unification: Nazara is merging its scattered mobile studios into a single, unified ecosystem. The centrepiece of this strategy is the universal Nazara ID, which will enable shared progression, cross-title rewards, and first-party data capture. Simultaneously, its new centres of excellence in analytics, monetisation, and live operations now support all titles.

Merging Offline & Online: While digital volatility hammered Nazara’s balance sheet in Q2, its offline businesses quietly became the stabilising anchors. Smaaash and Funky Monkeys delivered cash flow and steady EBITDA. The gaming major also plans to embed its Nazara ID into these physical centres – transforming footfall into digital users, diversifying revenue streams and creating a two-way funnel between mobile games and entertainment venues. 

That said, the company’s long-term vision is to bring 50 to 100 Mn of India’s 500 Mn gamers into this connected ecosystem. Will this unified digital network be enough to sail Nazara through the volatility? Let’s find out… 

From The Editor’s Desk

🛒 Walmart’s PhonePe Woe

• The US-based retail giant’s international business posted a sharp profit decline in Q3 FY26, mainly due to a non-cash, share-based compensation charge of about $700 Mn linked to PhonePe’s upcoming IPO.
• The one-time expense arose because accounting standards mandate Walmart to adjust the valuation of the ESOPs granted to PhonePe employees. 
• Spun off from Flipkart in 2020, PhonePe is gearing up for its IPO with an expected valuation in the range of INR 62,000 Cr to INR 70,000 Cr and an OFS component reportedly sized at INR 12,000 Cr.

🌱 AgroStar’s $30 Mn Funding Fest

• Led by Just Climate, the agritech has raised a fresh funding round to expand its omnichannel network and strengthen its AI-led agronomy solutions.
• Founded in 2013, AgroStar operates a multilingual content-led commerce platform that combines digital access and physical retail to offer farm advisory and agri-inputs. It claims to serve over 10 Mn farmers through its network of 10,000 stores. 
• The round reflects renewed investor interest in the sector, with homegrown agritech startups raising $188 Mn across 16 deals in H1 2025. 

📊 Ultraviolette In The Fast Lane In FY25 

• The EV maker’s operating revenue surged 114% YoY to INR 32.3 Cr in FY25 on the back of growing sales. However, losses widened 89% YoY to INR 116.3 Cr due to expenses soaring 76% YoY to INR 189 Cr. 
• Founded in 2016, the Bengaluru-based startup manufactures ‘high-performance and premium’ electric motorcycles. The company plans to scale to 100 Indian cities by March 2026, while simultaneously ramping up distribution in Europe.
• Despite the growing top line, Ultraviolette’s high pricing barriers make it tough for the two-wheeler EV maker to sell its products in a market dominated by low-cost options.

📉 Groww’s Post-Listing Rally Ends

• Shares of the investment tech unicorn declined nearly 10% during intraday trade yesterday after a five-day rally, following its November 12 listing. It pared some of the losses to close the day finally at INR 156.62 on the BSE, down 7.8%.
• The stock decline comes in the wake of a stellar IPO performance, illustrating typical market corrections following initial over-enthusiasm and profit-booking by early investors and retail traders.
• Groww reported a 12% YoY rise in profits to INR 378.4 Cr in Q1 FY26, despite revenues falling 10% YoY to INR 904.4 Cr, highlighting a mixed financial performance amid broader market and regulatory pressures.

🗄️ TCS Goes Heavy On AI Data Centres 

• TCS has roped in TPG as an investor in its newly formed subsidiary, HyperVault. Together, the two companies plan to infuse up to INR 18,000 Cr in a mix of equity and debt over the next few years to build AI data centres.
• TCS will retain a 51% stake in HyperVault, while TPG is expected to eventually own between 27.5% and 49% in the new entity. The two giants are looking to build up to 1.2 GW of data centre capacity over five to seven years.
• The move marks TCS’ shift from asset-light operations to capital-heavy infrastructure as AI compute demand and data localisation requirements surge. It is also hedging its bets against rivals Infosys and Zoho, which are also expanding AI capabilities.

Inc42 Markets

Inc42 Startup Spotlight

Can Fragaria Fix India’s Premium Fruit Supply Chain

India’s high-end fruit market remains fragmented and dependent on imports. Even the local production struggles with climatic challenges, causing uneven quality and low availability. D2C brand Fragaria is here to change that. 

A Tech-Led Harvest: Founded in 2024, Fragaria operates a controlled-environment agriculture platform for strawberries, blueberries and raspberries. The company uses hydroponics, LED-assisted growth and precision climate control to maintain consistent yields throughout the year. This approach reduces weather-related risk and offers traceable produce.

Ramping Up Production: After operationalising its first farm in Chennai, with steady year-round output, Fragaria is expanding to a new facility in Bengaluru that will have a planned capacity of 120 kg of berries per day. Going forward, the company aims to strengthen its expertise in berry production and tap into India’s growing fresh fruits market, poised to reach $1 Tn by 2030. 

Buoyed by its recent funding and a premium price tag, can Fragaria woo India’s fresh fruit lovers? 

Infographic Of The Day

India’s AI moment isn’t coming — it’s already here. Meet the startups shaping the country’s next big tech leap in our November 2025 edition of AI Startups To Watch.